Devising a holistic strategy around converged infrastructure, security and services should be the channel's top priority, according to Dieter Lott, VP Business Development EMEA at Avnet Technology Solutions EMEA.
In November last year Avnet Technology Solutions decided to align its sales and vendor-facing arms in EMEA more closely - a shift of strategic focus that saw Dieter Lott, VP Business Development, take on more responsibilities for the Enterprise Business Group, managing the core strategic supplier relationships. Lott continues to be responsible for strategy, pan-EMEA account management and global SI sales, but his extended remit is to sharpen the distributor's sales and customer focus. "Vendors drive change in the industry," he said. "And having our EMEA sales account team and our strategic supplier teams under one umbrella means I'm at the centre of developments."
On taking his new role Lott's first job was to fix his calendar. "There's a lot of travel required and it's essential I plan my time effectively," he said. "I gain deep insights from vendors in areas such as the cloud and how these developments and trends will change the channel. A challenge is keeping pace with the speed of change, and harnessing technology environments where we need to align every vendor under one roof."
Lott's task is to take the knowledge he gains from core vendors, instil these insights into the various countries under his wing and convert that knowledge into sales strategies. "It's about profitability and organic growth," added Lott. "We have a solid strategic plan in place that defines my priorities. For example, converged infrastructure and security are very much growth areas we're working on to accelerate opportunities for our partners. The number one objective for us, as a distributor, is how to convert this market knowledge into business opportunities for our partners."
Having led the pan-EMEA sales force Lott has gained much experience of building relationships with large partners, managed service providers and ISVs. His aim is to apply this know-how into a medium-sized customer base which is core to Avnet. "Listening to partners and hearing their challenges helps me to understand them better," added Lott. "We can then use this knowledge to validate with resellers what and where the challenges are that need to be addressed."
Lott is well qualified to do this. His previous experience as a management consultant taught him to focus on strategy consultancy while contextualising all scenarios. He also worked in procurement, and a subsequent move into a selling environment proved apt as he already understood how people buy and how markets evolve. "This helped me to understand the channel market," he commented. "I've also lived and worked in many countries. The cultural differences are important as I take a helicopter view and look at the EMEA business as a whole."
Taking an aerial view of the comms/IT landscape, Lott observes in particular that the pace of change within data centres is 'spectacular'. "There's a bigger focus on software and services in the channel," he stated. "This doesn't mean that hardware isn't important, but nowadays I believe you need to lead with software and services. Avnet has already been on that journey for the last few years. Our number one role when working with partners is helping them evolve in this direction.
"For example, we work with partners to help turn server hardware specialists into virtualisation experts, and network specialists into Software Defined Networking (SDN) experts. This enables them to meet the industry trends and demands of end user businesses. That's the common theme we're seeing, and that's how we're aligning our business strategy in EMEA."
The drive for more scalable IT architectures and the convergence of data centres and networking technology is driving this market shift. "We're experiencing a radical change in how data centre infrastructure is designed and implemented and we're still in the early stages of adoption of these new technologies," added Lott. "There's a question over whether the channel has the IT skills to address these market demands. In 2015, not only will the channel need to educate themselves on emerging growth markets and technologies such as SDN and converged infrastructure, but they'll need to address skills shortages. Delivering efficient, reliable converged infrastructure and SDN requires new knowledge. This is where we will be trusted to provide both enablement and even the skills required."
Nor can the channel ignore security issues. With IDC predicting 30 per cent annual growth through to 2017 of smartphones purchased under a BYOD/A (Bring Your Own Device/App) approach, this year the focus will move further into addressing security inside the firewall and not just around perimeter IT defences, believes Lott. Gartner, in its Top 10 Strategic Technology Trends for 2015, called this a 'new multifaceted approach' which will lead to 'new models of building security directly into applications'.
"Resellers will need to learn about these new approaches to address this growth area effectively and to help end user businesses overcome the huge challenge of how to secure apps," said Lott. "Distributors can help by enabling partners to take a more holistic data centre-centric approach, taking BYOD and IOT (Internet of Things) requirements into account. Such value added services include not just technical training but also sales enablement activities. The channel needs this kind of help to address the demands of fast evolving data centres where security and network efficiency is paramount."
The move to software and services means less reliance on hardware. In terms of sales it's now a consultative approach rather than just about selling products. "As IT becomes more integral to how businesses are run resellers need to speak with line of business owners because they're increasingly involved in buying decisions around technology," noted Lott. "Resellers also need to have a finger on the pulse of trends. One thing I've learnt, and got right and wrong during my career, is that you need to get your timings right with trends. It's easy enough to identify when trends are occurring in the market, but spending the time working out when you should enter that market is paramount. This is where we fit in. Our key role is to offer this consultancy."